More cash continued to pour into stocks, while a greater activity was recorded last week as equities continued their run of gains, adding 0.8 per cent this time around.

It somewhat indicates the resilience the market has built for itself in the midst of elevated yields in the fixed-income space, which ordinarily would have been expected to suppress interest in shares.

With the start of the release of half-year corporate results around the corner, a key lever for share price appreciation in the near term is the expectation that the performance of a number of stocks, especially in the banking and building materials sectors will come out stronger.

On that score, investors should watch out for disclosures more keenly than before.

“Investors might start positioning for Q2-earning season, favoring corporates with FX gains, cost control, clear growth trajectory, and those with potential for quality interim dividend payment,” said analysts at United Capital.

“We expect retail investors to continue to take profit from the previous week’s gains, tactically slowing the upward movement of the equities market. We advise investors to cherry pick fundamentally sound stocks with potential for interim dividend payment,” they added.

“We expect retail investors to continue to take profit from the previous week’s gains, tactically slowing the upward movement of the equities market. We advise investors to cherry pick fundamentally sound stocks with potential for interim dividend payment,” they added.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

Lafarge Africa tops this week’s list for its chances of paying a stronger dividend for half-year 2025 (HY 2025). The price-to-book (PB) ratio of the cement maker is 2.7x, while the price-to-earnings (PE) ratio is 10.4x. Its relative strength index (RSI) is 69.3 per cent.

BUA Cement makes the pick for trading close to its lowest share price in 52 weeks and for its potential of declaring a stronger dividend for HY 2025. The PB ratio of the cement manufacturer is 6.7x, while the PE ratio is 22.9x. Its RSI is 53.6.

United Capital appears on the list for its chances of declaring a good dividend for HY 2025. The financial services group’s PB ratio is 3.2x, while its PE ratio is 2.3x.

First HoldCo makes the cut for trading below its intrinsic value and close to its lowest share price in 52 weeks. The bank holding company’s PB ratio is 0.4x, while the PE ratio is 1.5x. Its RSI is 45.1.

Lasaco makes the cut for trading significantly below its intrinsic value. The underwriter’s PB ratio is 1.4x, while the PE ratio is 7.7x. Its RSI is 52.7.